MIRA INFORM REPORT

Report Date :

23.10.2013

IDENTIFICATION DETAILS

Name :	MOHAN SPINTEX INDIA LIMITED
Registered Office :	D No. 11-40-1, S-1, Chitturi Complex, Pulipartivari, Street Vijaywada, Vijaywada – 520001, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.05.2005
Com. Reg. No.:	01-046188
Capital Investment / Paid-up Capital :	Rs. 290.577 Millions
CIN No.: [Company Identification No.]	U18100AP2005PLC046188
TIN No.:	28630189388
TAN No.: [Tax Deduction & Collection Account No.]	HYDM03991B
PAN No.: [Permanent Account No.]	AAECM2744G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of 100% Cotton Combed Yarn.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1800000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management has failed to file the financial data with the government department after the year 2011. As per available financial (2011), there appears slight dip in the profitability of the company. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term rating: “BBB-”
Rating Explanation	Having moderate degree of safety and carry moderate credit risk.
Date	12.07.2013

Rating Agency Name	CARE
Rating	Short term rating: “A3”
Rating Explanation	Moderate degree of safety and carry higher credit risk.
Date	12.07.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-866-2466266)

LOCATIONS

Registered Office :	D No. 11-40-1, S-1, Chitturi Complex, Pulipartivari, Street Vijaywada, Vijaywada – 520001, Andhra Pradesh, India
Tel. No.:	91-866-2466266/ 2427113
Fax No.:	91-866-2426527
E-Mail :	md@mohanspintex.com
Website :	www.mohanspintex.com
Corporate Office :	No.48-12-17,Near ESI Bus Stop, Eluru Road, Gunadala, Vijayawada -520004, Andhra Pradesh, India
Tel. No.:	91-866-2466266 / 277 / 288
Fax No.:	91-866-2466166
E-Mail :	info@mohanspintex.com marketing@mohanspintex.com
Factory 1 :	Vattigudipadu, Agiripalli Mandalam, Krishna District – 521211, Andhra Pradesh, India
Tel. No.:	91-8656-250456/ 250565
Fax No.:	91-8656-250453
E-Mail :	mohanspintexind@rediffmail.com
Factory 2 :	Remalle Village, Bapulapadu Mandal, Krishna District – 521110, Andhra Pradesh, India
Tel. No.:	91-8656-239555 / 557 / 558 / 559
Fax No.:	91-8656-239556
E-Mail :	mohanspintexind@rediffmail.com

DIRECTORS

As on 28.09.2011

Name :

Mr. Sankar Rao Koneru

Designation :

Director

Address :

55-6-16, Krishna Mandir Road, Venkoji Palem, Visakhapatnam – 530022, Andhra Pradesh, India

Date of Birth/Age :

15.04.1960

Date of Appointment :

31.03.2006

DIN No.:

00133956

Name :

Mr. Bobba Venkateswara Rao

Designation :

Director

Address :

40-25-18/1, Netaji Street, Patamata, Vijayawada – 520010, Andhra Pradesh, India

Date of Birth/Age :

01.01.1960

Date of Appointment :

31.03.2006

DIN No.:

00161960

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U01222AP1988PTC008154	KAMADHENU FEEDS PVT LTD	Managing director	05/01/1988	05/01/1988	-	Active	NO
2	U40101KA2005PTC035803	SRI NIRMALA POWER PRIVATE LIMITED	Director	02/06/2005	02/06/2005	-	Dormant	NO
3	U18100AP2005PLC046188	MOHAN SPINTEX INDIA LIMITED	Director	31/03/2006	31/03/2006	-	Active	NO

Name :

Mr. Ravi Kumar Gottimukkala

Designation :

Director

Address :

72-5-5, Lakshmi Nursing Home, St. Patamata, Vijayawada – 520010, Andhra Pradesh, India

Date of Birth/Age :

29.04.1970

Date of Appointment :

11.05.2005

DIN No.:

00295152

Name :

Mr. Mohan Rao Vallabhaneni

Designation :

Director

Address :

59-7-3A, Acharya Ranga Street, Ramachandra Nagar, Vijayawada – 520008, Andhra Pradesh, India

Date of Birth/Age :

19.10.1939

Qualification :

S.S.L.C.

Date of Appointment :

01.04.2008

PAN No.:

AARPV7157L

DIN No.:

00320520

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18100AP2005PLC046188	MOHAN SPINTEX INDIA LIMITED	Director	01/04/2008	11/05/2005	-	Active	NO

Name :

Mr. Sudhakar Chowdary Vallabhaneni

Designation :

Managing director

Address :

59-7-3A, Acharya Ranga Street, Ramachandra Nagar, Vijayawada – 520008, Andhra Pradesh, India

Date of Birth/Age :

06.06.1969

Qualification :

B.E.

Date of Appointment :

10.03.2013

PAN No.:

ABXPV8246M

DIN No.:

00320555

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U18100AP2005PLC046188	MOHAN SPINTEX INDIA LIMITED	Managing director	10/03/2013	11/05/2005	-	Active	NO
2	U24121DL2005PLC143452	KRIBHCO SHYAM FERTILIZERS LIMITED	Nominee director	08/12/2005	08/12/2005	10/09/2007	Active	NO
3	U70200DL2009PLC189405	KRIBHCO INFRASTRUCTURE LIMITED	Director	16/04/2009	16/04/2009	-	Active	NO
4	U17120MH1967PLC013669	CONFEDERATION OF INDIAN TEXTILE INDUSTRY	Director	19/09/2013	19/09/2013	-	Active	NO

Name :

Mr. Venkatanjan Kakarala

Designation :

Director

Address :

54-14/1-6-1, Srinivasa Nagar, Vijayawada – 520008, Andhra Pradesh, India

Date of Birth/Age :

08.02.1962

Qualification :

B.E.

Date of Appointment :

28.09.2011

DIN No.:

00680580

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74210AP1987PTC007283	MAGNA ENGINEERING PRODUCTS PRIVATE LIMITED	Whole-time director	16/08/1988	16/08/1988	-	Active	NO
2	U18100AP2005PLC046188	MOHAN SPINTEX INDIA LIMITED	Director	28/09/2011	18/08/2006	-	Active	NO

Name :

Mr. Yantrapragada Bhaskara Rao

Designation :

Alternate director

Address :

3-7-10, Rama Nagar, Nidadavole – 534301, Andhra Pradesh, India

Date of Birth/Age :

07.07.1939

Qualification :

B.A.

Date of Appointment :

08.07.2005

DIN No.:

01777661

Name :

Mr. Mohana Kumari Ravella

Designation :

Director

Address :

9-63-69, Hameed Street, Vijayawada – 520001, Andhra Pradesh, India

Date of Birth/Age :

04.05.1959

Qualification :

B.Com., LLB

Date of Appointment :

08.08.2008

PAN No.:

ABFPR0797M

DIN No.:

02303947

Name :

Mrs. Padmini Vallabhaneni

Designation :

Director

Address :

59-7-3A, Acharya Ranga Street, Ramachandra Nagar, Vijayawada – 520008, Andhra Pradesh, India

Date of Birth/Age :

13.06.1970

Qualification :

B.Com.

Date of Appointment :

08.08.2008

PAN No.:

ABXPV5566A

DIN No.:

02317647

Name :

Mr. Yantrapragada Subba Rao

Designation :

Director

Address :

20990, Valey Green Drive Apartment Cupertno, CA 95014, USA

Date of Birth/Age :

11.07.1965

Qualification :

M.B.A.

Date of Appointment :

08.07.2005

DIN No.:

03560766

Name :

Mr. Pemmasani Prudhvi Kumar

Designation :

Director

Address :

29-19-64, Sree Hasa IVF Hospital Dornakal Road, Suryarao Pet, Vijayawada – 520002, Andhra Pradesh, India

Date of Birth/Age :

18.07.1963

Qualification :

MS.GEN. SUR

Date of Appointment :

28.09.2011

DIN No.:

01744681

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110AP1996PTC024646	VIJAYAWADA INSTITUTE OF ONCOLOGY PRIVATE LIMITED	Managing director	15/07/1996	15/07/1996	-	Active	NO
2	U18100AP2005PLC046188	MOHAN SPINTEX INDIA LIMITED	Director	28/09/2011	28/09/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOTE: SHAREHOLDING AND ALLOTTEES DETAILS FILE ATTACHED

As on 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	18.18
Directors or relatives of Directors	81.82
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of 100% Cotton Combed Yarn.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Cotton Yarn (Others)	52051190

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Andhra Bank, R.R. Appa Rao, P.B. No. 22, Andhra Bank Buidlings, Vijayawada – 520001, Andhra Pradesh, India

· Indian Overseas Bank, Ring Road Branch, Near Benz Circle, Vijayawada - 520008, Andhra Pradesh, India

· State Bank of India, Patamata Branch, Patamata, Vijayawada - 520007, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	1075.373	340.842
Working capital loans banks secured	304.014	114.347
Loans taken for vehicles secured	4.487	2.161
Total	1383.874	457.350

Banking Relations :	--
Auditors :
Name :	Prasad and Company Chartered Accountants
Address :	29-13-46, Kaleswara Rao Road, Suryarao Pet, Vijayawada – 520002, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	ACHPP4796K
Others Related Parties :	· Jayalakshmi Enterprises · Magna Engineering Products · Kalpatharu Feeds · VMR Cigars · Mohan Traders

CAPITAL STRUCTURE

After 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
52650000	Equity Shares	Rs.10/- each	Rs.526.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
44460014	Equity Shares	Rs.10/- each	Rs.444.600 Millions

As on 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
31590000	Equity Shares	Rs.10/- each	Rs.315.900 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29057746	Equity Shares	Rs.10/- each	Rs.290.577 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		290.577	185.541	143.100
2] Share Application Money		28.340	1.999	0.000
3] Reserves & Surplus		142.588	87.257	34.576
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		461.505	274.797	177.676
LOAN FUNDS
1] Secured Loans		1383.874	457.350	462.330
2] Unsecured Loans		127.744	12.491	11.901
TOTAL BORROWING		1511.618	469.841	474.231
DEFERRED TAX LIABILITIES		43.778	13.887	11.786
TOTAL		2016.901	758.525	663.693
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1444.027	445.695	439.040
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.100	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	337.794	183.798	125.838
	Sundry Debtors	132.160	23.757	19.323
	Cash & Bank Balances	12.546	4.833	21.054
	Other Current Assets	55.376	31.728	7.412
	Loans & Advances	97.394	85.1480	57.400
Total Current Assets		635.270	329.264	231.027
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.309	12.520	2.308
	Other Current Liabilities	37.194	5.293	5.838
	Provisions	0.000	0.000	0.000
Total Current Liabilities		64.503	17.813	8.146
Net Current Assets		570.767	311.451	222.881
MISCELLANEOUS EXPENSES		2.007	1.379	1.772
TOTAL		2016.901	758.525	663.693

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	841.560	516.267	383.889
		Other Income	0.847	2.591	0.542
		TOTAL (A)	842.407	518.858	384.431
Less	EXPENSES
		Consumption materials changes inventories	544.481	313.730
		Manufacturing service costs	68.852	47.911
		Employee related expenses	37.600	26.870
		Administrative selling other expenses	16.275	11.095
		TOTAL (B)	667.208	399.606	303.271
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		175.199	119.252	81.160
Less	FINANCIAL EXPENSES (D)		39.728	30.175	44.014
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		135.471	89.077	37.146
Less/ Add	DEPRECIATION/ AMORTISATION (F)		29.000	22.858	14.072
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		106.471	66.219	23.074
Less	TAX (H)		51.104	113.318	4.688
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		55.367	52.901	18.386
	Earnings Per Share (Rs.)		1.91	2.85	1.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.57	10.20	4.78
Net Profit Margin (PBT/Sales)	(%)	12.65	12.78	6.01
Return on Total Assets (PBT/Total Assets}	(%)	5.12	8.54	3.44
Return on Investment (ROI) (PBT/Networth)		0.23	0.24	0.13
Debt Equity Ratio (Total Debt/Networth)		3.28	1.71	2.67
Current Ratio (Current Asset/Current Liability)		9.85	18.48	28.36

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10405793	28/12/2012	35,000,000.00	INDIAN OVERSEAS BANK	RING ROAD BRANCH, NEAR BENZ CIRCLE, VIJAYAWADA - 520008, ANDHRA PRADESH, INDIA	B68852763
2	10331963	22/05/2013 *	532,000,000.00	ANDHRA BANK	R. R. APPA RAO STREET, P. B. NO. 22, ANDHRA BANK BUILDINGS, VIJAYAWADA - 520001, ANDHRA PRADESH, INDIA	B79070108
3	10294138	20/06/2011	11,000,000.00	INDIAN OVERSEAS BANK	RING ROAD BRANCH, NEAR BENZ CIRCLE, VIJAYAWADA - 520008, ANDHRA PRADESH, INDIA	B15792476
4	10294128	16/06/2011	16,900,000.00	ANDHRA BANK	R. R. APPA RAO STREET, P. B. NO. 22, ANDHRA BANK BUILDINGS, VIJAYAWADA - 520001, ANDHRA PRADESH, INDIA	B15789886
5	10294132	09/06/2011	197,500,000.00	ANDHRA BANK	R. R. APPA RAO STREET, P. B. NO. 22, ANDHRA BANK BUILDINGS, VIJAYAWADA - 520001, ANDHRA PRADESH, INDIA	B15790504
6	10268112	01/07/2013 *	2,435,300,000.00	ANDHRA BANK	R. R. APPA RAO STREET, P. B. NO. 22, ANDHRA BANK BUILDINGS, VIJAYAWADA - 520001, ANDHRA PRADESH, INDIA	B82727801
7	10248358	14/12/2011 *	325,000,000.00	INDIAN OVERSEAS BANK	RING ROAD BRANCH, NEAR BENZ CIRCLE, VIJAYAWADA - 520008, ANDHRA PRADESH, INDIA	B29947199
8	10202312	04/02/2010 *	607,500,000.00	ANDHRA BANK	R. R. APPA RAO STREET, P. B. NO. 22, ANDHRA BANK BUILDINGS, VIJAYAWADA - 520001, ANDHRA PRADESH, INDIA	A80779739
9	10003742	20/06/2011 *	673,400,000.00	STATE BANK OF INDIA	PATAMATA BRANCH, PATAMATA, VIJAYAWADA - 520007, ANDHRA PRADESH, INDIA	B16040990

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loans directors unsecured	127.744	12.491
Total	127.744	12.491

OPERATIONAL PERFORMANCE :

The Company has successfully completed the setting up of Unit II with a capacity of 41,760 Spindles, 1,664 Rotors, 10 TFO Machines for Spinning and Ginning and commenced commercial production from 7th March 2011.

FIXED ASSETS

· Land

· Building

· Furniture fixtures

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.78
UK Pound	1	Rs.99.66
Euro	1	Rs.84.49

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--